Keurig Deal Will Deliver Kraft Coffee Brands In Portion Packs

Following the announcement earlier this week that it would partner with McDonald’s to bring McCafé coffee products to retail in 2015, Kraft says it is partnering with Keurig Green Mountain Inc. on a multi-year licensing, manufacturing and distribution agreement for Kraft’s branded coffees in Keurig portion pack formats compatible with Keurig consumer and commercial brewing systems in the U.S. Financial terms of the agreement were not disclosed.

“We hear time and time again that consumers consistently choose the Keurig brewing system for the quality, simplicity, value and, most importantly, the variety of brands and beverages available in the system,” said Brian Kelley, Keurig’s president and CEO. “Adding Kraft’s celebrated brands to the licensed Keurig family means Keurig consumers will be able to enjoy even more beverages they know and love with the quality and consistency they expect from their Keurig brewer.”

Added Dino Bianco, Kraft’s EVP and president of beverages, “At Kraft, we have made significant strides in rejuvenating our coffee business across all segments—including mainstream, premium and on-demand—by focusing on driving profitable growth for our brands and our customers. This agreement offers the opportunity for expanded distribution across multiple channels and is another example of our focus on long-term growth in action.”

With this new agreement, consumers in the U.S. can enjoy favorite Kraft coffee brands, Maxwell House, Gevalia and Yuban along with McCafé in a variety of licensed Keurig portion pack formats for both the at-home and away-from-home channels including:

• K-Cup packs: brew the perfect cup of coffee, for use in Keurig K-Cup Single Cup Brewers, the forthcoming Keurig 2.0 Brewing System, and available through Keurig Authorized Distributors for away-from-home channels.

• K-Carafe pack: a single-portion pack optimized to brew four cups of coffee into a specially designed Keurig carafe, exclusively for use in the Keurig 2.0 Brewing System.

• Keurig Bolt pack: a single-portion pack containing the right amount of coffee to brew a high-quality, fresh half-gallon pot of coffee from a single pack; exclusive for use in the Keurig Bolt Carafe Brewing System and ideally suited for large office and food service locations.

Keurig licensed Kraft-branded portion packs will begin to launch this fall. Initially, both Kraft and Keurig will handle manufacturing for single-serving pods. Following a planned transition period, Keurig will become the exclusive manufacturer of Kraft-branded Keurig packs using coffee sourced, roasted and blended by Kraft.